Pumps with Purpose: KickStarting Families Out of Poverty

The Number One Need of the Poor is a Way to Make Money.

Everyone today lives in a cash economy. When you have cash, you can get food, water, shelter, medicine, and other basic necessities. If you don’t, you can’t. It is that simple. The cause of poverty is a lack of money, so what a poor person needs most is a way to make more money.

WHY WE SELL OUR TOOLS?

“Wouldn’t it be better to just give your pumps away?” This is a question we get asked a lot. By “better” people usually mean, “less expensive” or “more effective”. The answer in both cases is no. Let us prove it to you.

Let’s assume two different models — the KickStart model of selling our pumps through a profitable supply chain, and a Giveaway model where KickStart would make and distribute our pumps for free.

              GIVEAWAY vs. KICKSTART

Costs per pump

$290

$257

Manufacturing

65

65

Revenue

-72

Total Units Distributed

6,897

7,782

New Profits and Wages over 4 years

$9,1036

$27,394,4

People Moved Out of Poverty

10,345

31,130

Cost Per Person Out Of Poverty

$193

$64

So you can see, the KickStart model actually gets more people out of poverty, more cost effectively than giving the tools away. The difference is in the percentage of tools used to create a new, profitable business. Less than one-third of pumps given away are used to create a new enterprise. Why? Because the recipient, however grateful he or she might be for the gift, may not have the entrepreneurial drive and desire to get ahead. People who INVEST in our pumps have made a commitment to improving the quality of life for their families. There is also the benefit of creating a lasting supply chain.

A SYSTEMATIC APPROACH TO THE END OF POVERTY. OUR 5 STEP PROCESS:

  • ESTABLISH A SUPPLY CHAIN: How can we produce these? The greatest invention cannot change the world if it does not get manufactured and distributed.
  • MEASURE AND MOVE ALONG: Is this going as we planned? Once we reach the tipping point, KickStart will make a profit on every sale. We will reinvest these to develop new technologies.
  • ESTABLISH A SUPPLY CHAIN: How can we produce these? The greatest invention cannot change the world if it does not get manufactured and distributed.
  • MEASURE AND MOVE ALONG: Is this going as we planned? Once we reach the tipping point, KickStart will make a profit on every sale. We will reinvest these to develop new
  • technologies.
IMPACT:
KickStart Total Impact to Date

Impact Report as of April 1, 2011

Pumps Sold: 174,600

  • Kenya: 63,500
  • Tanzania: 42,050
  • Mali: 8,900

Enterprises Created: 111,800

  • Kenya: 51,800
  • Tanzania: 34,400
  • Mali: 7,500

People Moved out of Poverty: 559,300

  • Kenya: 258,900
  • Tanzania: 172,200
  • Mali: 37,900

New Profits and Wages Generated Annually: $113 million

Bang for Buck Ratio: 1:15
(dollars earned by farmers for each donor dollar spent)

Cost to KickStart to get one family out of poverty forever: $300

Cost per person moved out of poverty: $60

We could base our claims of success on the number of pumps we’ve sold to-date. But this tells us nothing about whether we are meeting our mission–helping people get out of poverty.

Information and Media taken from the KickStart Website @: www.kickstart.org


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